We live in a celebrity-obsessed culture. Thanks to that, celebrities have made millions of dollars pitching various products.

But do you need one pitching yours?

I’m writing this as the case of Jared Fogle and Subway is in the news. Fogle didn’t start out as a celebrity. The ex-Subway spokesperson achieved his celebrity status by accident after he lost a substantial amount of weight following a diet plan that included Subway sandwiches.

jail-cell-1But because Fogle became a celebrity with national visibility, it was big news when he was investigated and agreed to plead guilty to charges related child pornography and illicit sexual conduct with minors. Subway moved quickly to end its relationship with Fogle and remove references to him from its website.

How much damage the Subway brand will sustain from this situation remains to be seen, but the whole issue should make you think twice about hiring someone to be the face of your company.

The Fogle/Subway case is just one in a long list of stories where sponsors have had to deal with behavior from their celebrity spokespeople that ranged from simply embarrassing to criminal.

A few years ago, I did some research on this topic for Flashpoint, a book I ghostwrote for J.K. Harris (who ended up facing some embarrassing publicity due to his own moderate celebrity status and some questionable business decisions). Here’s an excerpt from that book on this topic:

The term used to describe the value of a celebrity spokesperson is borrowed equity, and the idea is that the celebrity’s equity (value) will rub off on the brand being endorsed. But the brand only gets the borrowed equity for the time the spokesperson is under contract—and the borrowed equity isn’t always what the brand had hoped for.

One [such case] is Michael Phelps, who was dropped by Kellogg’s after the was photographed inhaling from a marijuana pipe. The Italian sneaker and tennis-gear company Tacchini was willing to pay tennis player Martina Hingis to endorse its products—until she sued it, claiming its gear was responsible for several injuries. And you almost have to feel sorry for the Beef Industry Council: After signing James Garner and Cybill Shepherd to endorsements deals in 1986, Garner had quadruple-bypass surgery (possibly from eating burgers and steaks) and Shepherd revealed that she doesn’t eat meat. After that the Beef Industry Council began using ordinary people in its commercials.

Another point to consider when you’re using celebrities who are essentially their own brand is the question of whether you’re building their brand or yours. Did Paris Hilton’s commercial for Carl’s Jr. increase burger sales or just Hilton’s notoriety?

That takes us back to the original question: Do you need a celebrity spokesperson?

In most cases, the answer is no.

Certainly there are some products—sports equipment comes to mind—where a celebrity recommendation (even though it’s bought and paid for) can boost sales. But most companies will see better results if they take the money they might pay a celebrity and invest it in coming up with some creative marketing ideas that feature real people—the company’s owner, its employees and actual customers.

Focus on establishing your own brand and making that—not a celebrity—be what stands out in your customer’s mind.

What are your thoughts on using a celebrity spokesperson?

Jacquelyn Lynn
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